More than 70% of customers surveyed believe small businesses understand their customer better than large companies, know their business/product better than large companies, provide a more personal customer service experience than large companies, and are more concerned about my needs than larger companies.
Source: American Express Global Customer Service Barometer, 2012It is 6 to 7 times more expensive to acquire new customers than it is to keep a current one.
Source: White House Office of Consumer AffairsIt takes 12 positive experiences to make up for one unresolved negative experience.
Source: HelpScoutMillennials believe that other consumers care more about their shopping experiences than companies do – that’s why they share their opinions online.
Source: OECD “Electronic and Mobile Commerce,” 2013

87% of global consumers believe business should place at least equal emphasis on social interests as business interests, and ‘purpose’ has increased as a purchase trigger by 26% since 2008.
Source: Edelman Trust Barometer, 2013

While 50% of Americans trust businesses to do what is right, only 15% trust business leaders to tell the truth.
Source: Edelman Trust Barometer, 2013

Only 34% of workers say, “Employees [in their company] have a high level of trust in management and the organization.
Source: Interaction Associates 70% of buying experiences are based on how the customer feels he or she is being treated.
Source: McKinsey$83 billion is estimated to be lost by U.S. businesses every year due to poor customer service.
Source: Genesys

Businesses lose $289 each year for every customer who leaves due to poor service.
Source: GenesysOn average, loyal customers are worth up to 10 times as much as their first purchase.
Source: White House Office of Consumer Affairs

In 2012, only 37% of US companies earned a customer experience index rating of “excellent” or “good.”
Source: Forrester

80% of big companies described themselves as delivering “superior” service, but only 8% of customers say they’ve experienced “superior” service from these companies.
Source: The New Yorker

In the past year, two in five consumers or more in most markets indicate that they have not completed a transaction or made an intended purchase because of poor customer service.
Source: American Express Global Customer Service Barometer

66% of consumers switched companies in at least one of ten industries due to poor service in the past year. 82% of consumers felt their service provider could have done something to prevent switching. 55% say they’d have stayed if the company had proactively contacted
them, and 51% would have stayed had the company simply recognized them
and rewarded them for their business.
Source: Accenture Global Consumer Pulse Research, 2013

What are some of those frustrating interactions for customers that can be fixed to prevent switching behavior?

Only 50% of consumers give a brand only 1 week to respond to a question before they stop doing business with them.

After poor customer service, 26% of consumers post a negative comment on social networking sites like Facebook or Twitter.

79% of those who complained about poor customer service had their complaints ignored.

57% of survey respondents said companies are clueless, it sometimes feels like the consumer knows more about the company than the customer service agent.

Some other facts...

For every customer who bothers to complain, 26 others remain silent.
Source: White House Office of Consumer Affairs

Consumers are two times more likely to share their bad customer service experiences than they are to talk about positive experiences.
Source: 2012 Global Customer Service Barometer

A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related.
Source: Bain & Co.

A 10% increase in customer retention levels result in a 30% increase in the value of the company. Source: Bain & Co

I think there's a lot of compelling information here. If these stats don't scare you into focusing on the customer experience, I'm not sure what will. What's stopping you or your executives from focusing on the employee experience and the customer experience?

6 comments:

1. Globally, more people trust regular employees to tell the truth than CEOs (50% vs. 43%).2. While 50% of Americans trust businesses to do what is right, only 15% trust business leaders to tell the truth.

The stat that sticks out for me is that customers are 4 times more likely to leave for service issue than product issue. Now obviously they are absolutely linked buy how often does a company put all it's effort into finishing a product and getting it to market quickly without the same level of investment in the support model.

And we know that the customer will feel "social pain" when they are let down, and unlike physical pain they will have the same painful sensation whenever they think about it. So they are unlikely ever to go back.

About CX Journey Inc.

CX Journey Inc. is a consulting firm specializing in laying the groundwork required to establish a CX strategy that will drive your culture transformation efforts. Our beliefs are that (1) customer understanding along the customer experience journey is key to developing a strategy that allows both customers and businesses to achieve their desired outcomes, and (2) the employee experience cannot be an afterthought.

Why CX Journey™?

You know the quote, "Success is a journey, not a destination." Well, the customer experience is a journey, too. It's a never-ending journey. Once you've designed the best experience for customers today, their needs change, their expectations evolve, customers change, etc. You'll need to think about the experience today and listen for - and anticipate - what lies ahead. You must always strive to deliver that ultimate customer experience, not only at a single touchpoint but also - especially - along the entire journey. Have you taken the first step?

"Knowing where you're going is the first step to get there." -Ken Blanchard

"It is good to have an end to journey toward, but it is the journey that matters in the end." - Hemingway